The proposed extension would include new stations at Battersea Power Station and Nine Elms. Credit: Reuters, Oli Scarff.

The Chancellor has announced a £1 billion pound loan to London Underground to finance the extension of the Northern Line to Battersea.

Mayor of London Boris Johnson said:

“I am delighted that after months of intensive discussions and hard work we have got the go ahead from Government on financing an extension to the Northern Line, which is hugely significant as Nine Elms is one of the areas with the greatest prospect for new development in the whole of the capital.

"It will be an incredible confidence boost for developers preparing to invest there and it will also be a considerable boost for local people who will benefit from the new Tube link.”